Assume That a Firm's Costs Are Split Between Variable Costs

question 116

Multiple Choice

Assume that a firm's costs are split between variable costs and fixed costs.Once variable costs are covered

• A) any extra money is profit.
• B) any extra money goes toward paying the fixed costs.
• C) the firm will shut down.
• D) the firm will make an economic profit.
• E) the firm will break even.

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Definitions:

Virtual Organization

A company that mainly operates through electronic communication and does not have a physical location, relying on networks and technology to perform its operations.

Strategic Control

A method for monitoring the execution of an organization's strategic plans and measures taken to adjust strategies when necessary.

Innovative Units

Teams or departments within an organization dedicated to the development and implementation of new ideas or technologies.

Organic

Refers to structures and processes in organizations that are flexible and adaptable, often contrasted with more hierarchical and rigid structures.